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9B-17 (Algo) You are the auditor of Unet Incorporated, an auto air-conditioner service and repair company, and you have decided to use the mean- per-unit
9B-17 (Algo) You are the auditor of Unet Incorporated, an auto air-conditioner service and repair company, and you have decided to use the mean- per-unit method to test the existence and gross valuation of recorded accounts receivable. The client's records include 11,000 accounts with a total book value of $2,748,000. You decide to use tolerable misstatement of $182,000, an incorrect acceptance risk of 5 percent, and an incorrect rejection risk of 4.6 percent. Using Excel, you estimated the standard deviation of the population as $104. Required: a. Determine the sample size. b1. The mean audited value of the accounts in the sample was $244. Assuming that the standard deviation of the sample's audited value is also $104, what is the projected misstatement for the population? b2. Will you accept this account as not being materially misstated? c1. Assuming that the standard deviation of the sample's audited value is $244, what is the projected misstatement for the population? c2. Will you accept this account as not being materially misstated? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 Determine the sample size. Sample size accounts < Req A Req B1 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 The mean audited value of the accounts in the sample was $244. Assuming that the standard deviation of the sample's audited value is also $104, what is the projected misstatement for the population? Projected misstatement Req A Req B2 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 Will you accept this account as not being materially misstated? Materially misstated < Req B1 Req C1 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 Assuming that the standard deviation of the sample's audited value is $129, what is the projected misstatement for the population? Projected misstatement < Req B2 Req C2 > Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 Will you accept this account as not being materially misstated? Materially misstated > Req C1 Req C2 >
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